As of 05/26/2020
  Indus: 24,995 +529.95 +2.2%  
  Trans: 8,896 +425.52 +5.0%  
  Utils: 769 +5.10 +0.7%  
  Nasdaq: 9,340 +15.63 +0.2%  
  S&P 500: 2,992 +36.32 +1.2%  
YTD
-12.4%  
-18.4%  
-12.5%  
 +4.1%  
-7.4%  
  Targets    Overview: 05/13/2020  
  Up arrow27,000 or 24,000 by 06/15/2020
  Up arrow9,800 or 8,200 by 06/15/2020
  Down arrow700 or 800 by 06/01/2020
  Up arrow9,800 or 9,000 by 06/15/2020
  Up arrow3,100 or 2,650 by 06/01/2020
CPI (updated daily): Arrows on 5/15/20
As of 05/26/2020
  Indus: 24,995 +529.95 +2.2%  
  Trans: 8,896 +425.52 +5.0%  
  Utils: 769 +5.10 +0.7%  
  Nasdaq: 9,340 +15.63 +0.2%  
  S&P 500: 2,992 +36.32 +1.2%  
YTD
-12.4%  
-18.4%  
-12.5%  
 +4.1%  
-7.4%  
  Targets    Overview: 05/13/2020  
  Up arrow27,000 or 24,000 by 06/15/2020
  Up arrow9,800 or 8,200 by 06/15/2020
  Down arrow700 or 800 by 06/01/2020
  Up arrow9,800 or 9,000 by 06/15/2020
  Up arrow3,100 or 2,650 by 06/01/2020
CPI (updated daily): Arrows on 5/15/20

Bulkowski on Trading Excitement

 

Did you begin trading just for the excitement? Many traders do.

Basket Case Bob is an example. At the age of 15, he ran away from home, becoming accustomed to experiencing emotional highs and lows. In his adult life, he resorted to drinking, smoking, and gambling while being aggressive toward others. One year he would make several million dollars trading and bask in the trappings of success. The next year, he would lose it all and have to borrow from friends to survive. Once he realized his destructive behavior was rooted in his need for excitement, he was able to overcome his unresolved issues and is now a consistent trader.

Such a need for excitement can wreak havoc on a trader if they use it to produce emotional extremes. The need for excitement begins a roller-coaster ride of greater profits and greater losses, leading a trader to abandon money management and ignore trading signals.

Solution

How do you change this behavior? First, you have to want to change. Second, you have to figure out what you are doing wrong and fix it.

When I told a part-time trader new to the business of trading about the need for excitement, it clicked with him. "You're right," he said. What did he do? He began to set goals. "I will change $15,000 into $25,000 by tax day," he said. And he did, too. "I will make it to $30,000 by June 1." He is still trading for excitement, but he is trading smarter, knowing that losses could prevent him from reaching his goal. He takes his time waiting for the proper setup to arrive before he buys. Sometimes he gets too excited and places a trade just for the kick and those usually turn into disasters. "Yeah. I lose big."

Try to understand your motivation for placing trades. If you are focused more on the adrenaline rush you get from trading and less on anything else (like making money), then know you have a problem. Perhaps you can find another outlet for your energy, such as video games (I'm not kidding). Channel your need for excitement into less costly endeavors. Or you can dig deep to understand your need for excitement. Confront and resolve those unresolved dramas in your life. You will probably be happier, too.

-- Thomas Bulkowski

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See Also

 

Support this site! Clicking any of the books (below) takes you to Amazon.com. If you buy ANYTHING while there, they pay for the referral.

My novels:  Bumper's Story Head's Law

Chart Patterns: After the Buy Getting Started in Chart Patterns, Second Edition Trading Basics Fundamental Analysis and Position Trading Swing and Day Trading Visual Guide to Chart Patterns Encyclopedia of Candlestick Charts Encyclopedia of Chart Patterns 2nd Edition Trading Classic Chart Patterns

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